RE:This WaitTheBridge wrote: The fortunate thing is that at least we're getting a dividend while we're waiting around this time.
Full blown recession or the digesting of economic imbalances caused by economic policies during the Pandemic?
Remember when the news was all about: "Pent up consumer demand"?
I think we are past that.
Now comes the hangover.
Standard of living for Canadians continues to fall as the cost of living is forced higher by policies of our current, bloated, idealistic Govt.
I sent a note to the Bank of Canada last week. I cited 0.25% BOC overnight rates combined with the doubling of circulated money since Trudeau took office in 2015, has created hyperinflation for all Canadians, most who do not have inflation hedges in place.
We now have a generation of Canadians who own a house/apartment/condo but may never pay off the associated mortgage debt in their lifetimes. What does that do to spending? When wages are not growing, when the food and fuel costs are double, and mortgage costs are triple or quadruple, people will not spend. That is our recession.
We may need 12-18 months to digest the financial harm caused by hyperinflation.
Recovery for Gamehost still underway but the share price won't reflect it until people see the earnings growth with their own eyes.
I don't think this is the "mother of all recessions" as some have bravely predicted.
This is a moderate slowing of economic growth until families have adjusted to runaway inflation.
Stocks will swing wildly downward and then recover a large chunk of what vanished but it will take time. Months, quarters, maybe a year or two.
I don't worry about Gamehost but some of the more cyclical names with growth models will be hammered.
Funny how rising interest rates take the hot air out of the balloon. If you stocks are falling fast, then you own too many balloons and not enough boring businesses. No more commercials pushing crypto currencies and meme stocks.
Long ago, a recession would mean $50-60 oil and no jobs.
That's not what we see today. This is an adjustment to weak consumer spending after they overspent the past few quarters, celebrating the govt permitting its people to leave the house/province/country.
What would Buffet and TLV do? They will "buy more" of the shares that they believe are undervalued.
I think they are on the right path.
With that said, would not want to be leveraged into Real Estate at the moment. General RE prices may show -20% in some regions over next 18 months as higher borrowing costs chill the market and wipe out speculators.
Wash, rinse, repeat.